Group Meetings Success Strategies and Benchmarking
By Eric Eden Vice President of Marketing, Cvent | September 22, 2013
It has been a long time coming, but all signs finally point toward group business activity increasing to the extent that demand for space becomes balanced with the supply. According to Frost & Sullivan estimates, the meetings and events (M&E) market is currently valued at $565 billion dollars annually, generating an average of $12 million in revenue for hotels and accounting for $14 million of spend on off-site hotels and venues across large companies per year, on average.
While this is excellent news for hotels, the highly competitive atmosphere of the last few years is unlikely to dissolve. A lot has changed since the last suppliers' market. Hotels with plans that are limited to waiting for business to flow into the property because of brand or location, or to solely compete on price, will be left behind.
So what should suppliers be thinking about as the group business resurgence tips the scales in their favor? First, hotels need to get familiar with modern meeting organizers, understanding their expectations and needs. Second, hotels must understand and embrace technology which is increasingly influencing how meetings are booked and a decision factor in venue selection. Lastly, measuring success in a manner that can constructively be used to evaluate what is and is not working is critical to evolving the sales strategy and being successful.
Getting to Know Today's Meeting Planners
With more than a third of hotel revenue being generated from meetings and events (M&E), suppliers must acknowledge the competitive pool of hotel and destination options that makeup the industry. As technology has made information available at the click of a button, suppliers have to do more to build brand awareness and avoid getting lost in the sea of possibilities meeting planners are presented with today.
To best anticipate the needs of meeting organizers, it is important to be familiar with the different types of planners and the unique characteristics of each. In the Cvent Supplier Network (CSN) we can identify clear patterns across three distinct groups:
The Hotel Business Review articles are free to read on a weekly basis, but you must purchase a subscription to access
our library archives. We have more than 5000 best practice articles on hotel management and operations, so our
knowledge bank is an excellent investment! Subscribe today and access the articles in our archives.